IndiBlog

Fiat is on the comeback trail, especially after the 500 became a big success. We already know that Fiat has grand plans for the Indian market with the upcoming Grande Punto and Linea sedan. What most dont know is that Fiat is also going on a major shopping spree in India. For auto components to be precise, lots of them to supply Fiat's international vehicle manufacturing plants and enable it to reduce costs to stay competitive. To facilitate this Fiat has set up a purchasing office in New Delhi which would source as much as €250 million (Rs1,595 crore) worth of auto components from Indian auto component manufacturers.

“Whatever it is possible to buy from India, we’ll buy,” said Gianni Coda, chief executive officer of Fiat Group Purchasing srl. “We have to be competitive in selling cars, selling trucks, selling tractors... We need to reduce costs.”
He's got that right, India has become a sought after destination for auto majors looking to source quality components, 12-15% cheaper than those from Western Europe. Fiat currently purchases parts worth €30 million from India for exports to its factories worldwide.